Session-15

Managerial
Ethics- Process

Prof. Muneza Kagzi

T. A. Pai Management Institute
(TAPMI)
Content
• Recap of the previous session
• Case study discussion
• Business Ethics Process
• Summary
Case study
discussion
What is there in the case?
 Summary of the case Victor Min (47)- Manager

Motox- Respect for each Physical

Moto X employee, safety first, and assault
Canadian company absolute safety and security
of the employee at the work
place
JV (60%)

Nambu, interestingly, had

Neglect the
Nambunese company a tradition of the highest
safety gears
Nambu respect to authority and
obedience towards one’s
seniors

Tomy Tang (25)- Employee

The Human Resource Officer of this Nambunese
operation, Mr. Stan Stark, needs to address this
issue. Please suggest what Mr. Stan Stark should
do? Discuss this in the light of ethical decision-
making process.
Tomy Tang (25)- Employee

Options
a) Lay off victor and Tommy
b) Lay off Victor and give another chance to Tommy to
follow Safety regulations
c) Dismiss Tommy and Give another chance to Victor
d) Give another chance to both Victor and Tommy with
proper instructions and monitoring

https://www.menti.com/3rf8zc1bxk
The digit code 45 83 00 9
Victor Min (47)- Manager
1. Lay off victor and Tommy
• Both violated the norm
• Victor violated the global ethical norm of company
• Tomy violated the warnings and the safety instructions
• Set the example for all the employees
• Brand image of the company

Tomy Tang (25)- Employee Victor Min (47)- Manager

2. Lay off Victor and give another chance to Tommy to follow
Safety regulations
• Violated the global ethics code
• Have larger important role to play in the organization

Tomy Tang (25)- Employee

3. Dismiss Tommy and Give another chance to Victor

• Tommy has a lesser important role than Victor

• Victor-competent employee and important resource- more powerful
stakeholders
• Moral standards from Motox company

Victor Min (47)- Manager

4. Give another chance to both Victor and Tommy with proper
instructions and monitoring
• Establish the conversation between both and give chance
• Give them written warning

Tomy Tang (25)- Employee Victor Min (47)- Manager

How will you decide?
Framework for effective, ethical decision making process
1. Facts- Obtain the facts
2. Issues- Identify the dilemma
3. Alternatives- What choices do you have?
4. Stakeholders
who has an interest? What are their motivations? How much power does each hold?
5. Impact
Stakeholders’ resulting impacts on you? benefits/harms, rights/wrongs?
6. Guidance
Guidance from ethical theory, your profession, or your organization
7. Action
8. Monitor Outcomes
1. Facts
• Information on culture
• Stakeholders
• Nambu Govt, Residence, workers
• Employees of the organization
• Previous work history and behaviour of Victor and Tomy
2. Issues- Identify the dilemma

MotoX global ethics- No Nanbu’s culture- compensation

physical harm Vs. and apology
Tomy Tang (25)- Employee

3. Alternatives
a) Lay off victor and Tommy
b) Lay off Victor and give another chance to Tommy to
follow Safety regulations
c) Dismiss Tommy and Give another chance to Victor
d) Give another chance to both Victor and Tommy with
proper instructions and monitoring

Victor Min (47)- Manager

 4.Stakeholders

• Who has an interest?

• Employees of the Motox
• Employees of the Nambu
• Govt.- Nambu
• What are their motivations?
• Employment and growth of Nambu
• How much power does each hold?
• Nambu’s employees and Govt.
5. Impact of the decision
• Impact on the profitability
• Brand image
• Culture
• Risk associated with the violence by the local community-
• What if the Tomy is fired and locals creates tension?
DEONTOLOGY – ARE WE UTILITARIANISM - CBA RIGHTS BASED – ARE
6. Guidance
DOING THE RIGHT
THING?
THERE ANY HR AT STAKE?
from the
Theories of
business
ethics
FAIRNESS AND JUSTICE – CHARACTER & VIRTUE –
IS EACH STAKEHOLDER, ARE WE BEHAVING LIKE
TREATED WITH JUSTICE? A VIRTUOUS UNIT?
 A. Universalism or Deontology
•Duty of the employees

•Do what is right, no matter the cost

• We can control our actions, but not the outcomes.
•Right thing
• To fire immediately to both?
• Or one warning is sufficient?

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B. UTILITARIANISM OR
CONSEQUENTIALISM
• The greatest good for the greatest number
• One need to guess the potential outcomes of their choice in order to
determine what is ethical.
• Making a decisions based on what will benefit the majority
• Firing both will upset the employees at home location and client
location
• Firing both Victor and Tomy will be costly to the organization

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C. Right based theory
•Right to life and survival

•Right to liberty to pursue means to survive including,

• Rights to labor (to work)- should you fire the employees

immediately on one mistake?

•Freedom of speech, right to information

• Are any human rights at stake in this decision?

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D. Fairness and Justice
•Justice involves

• Treating every person and every organization as an equal

• Giving every person their “due,” what is owed,
earned, or deserved Fairness: making judgments
that are free from discrimination
• Firing Tomy because he is just a worker from
emerging courtiers?

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 E. Virtue Ethics
•Vision and value system of organization

•Values

• Strong focus on safety

• Respect for each employee, safety first, and absolute safety and security
of the employee at the work place
•Fire both employees

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6. Guidance from your profession, or your
organization
• What happened in the past with similar incidence in your
organization/professional experience?
• What is the credibility of the actor- Mr. Stark?
7&8- Action and monitor outcomes
• Take action and monitor the outcome for sufficient time
• Communicate effectively the reason for taking action
• Take stakeholders in confidence before taking the actions-
constructive dialogues
• Important stakeholders include
• Nambu Local community leader- Govt. representative
• Authorities at MotoX Canada
• Employees at Nambu plant
Reference
• Book- Business Ethics & Corporate Responsibility Hartman &
Werhane
• Decision Making Process
• Caselet-1
Thank you